Question:
What are the Limitations and Difficulties of the Multiplier Effect?
Author: eric_galvaoAnswer:
-The Size of such Effect depends on Leakages from the Circular Flow of Income, which is hard to Measure in Reality. -Time Lags, and often Years of Government Spending showing in the Economy in its Full -Measuring the Size of such Effect is hard as it is Changing Constantly -Governments as a result may be Unable to Control GDP very much
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